13
products" a nd had engaged independent testing
agencies to test all children's sleepwear.
"We take the safety of our products very
seriously and want to reassure our customers that
we have taken all the necessary steps to resolve this
issue," it said.
"Cotton On Group works with va rious
children's charities around the world, many of
which focus on the healthcare and education
of children. We are committed to [their] welfare ...
in both product safety and our charitable causes.''
But ACCC Deputy Chair Delia Rickard
disagreed on the aspect of child safety.
"These breaches were very serious as they placed
the safety of young children at risk," she said.
"The nightwear was so flammable that it should
not have been supplied in Australia at all."
Compounding the situation, she said, wa s the
labelling of the highly flammable nightwear as
'low fire danger'.
Justice Tracey did not let Cotton On's past safety
breaches or failure to comply with standards or
take remedial action go unnoticed either.
As his judgment outlines:
• In August 2007, the ACCC raised concerns
with Cotton On Clothing about sunglasses
it offered for sale, which did not comply with
the relevant safety standard. The company
provided an undertaking to the ACCC
then that it would implement procedures to
ensure that all sunglasses and any other stock
in its retail stores complied with applicable
standards and were labelled accordingly. It
also undertook to implement a trade practices
compliance program to ensure employees were
aware of those responsibilities a nd obligations.
• In August 2008, the ACCC investigated
Cotton On's labelling of boots as "lambskin"
when they were m ade from wholly synthetic
materials. No fine was involved in this instance.
Cotton On did agree, though, to a series of
undertakings, including correction notices,
full refunds to buyers and the implementation
of a trade practices compliance program. The
program was to focus on sections 52 and 53
of the Trade Practices Act 1974, which covers
engaging in conduct that is misleading or X